Case Note & Summary
The appellant, Rishabhkumar Jejani, filed an appeal under Section 37 of the Arbitration and Conciliation Act, 1996, challenging an order dated 28.08.2015 passed by the Principal District Judge under Section 34 of the Act, which set aside an arbitral award dated 29.08.2015. The appellant paid a court fee of Rs.25 under Article 13 of Schedule II of the Maharashtra Court Fees Act, 1959. The court office and respondent No.2 (National Highways Authority of India) raised a preliminary objection that the court fee should be paid under Article 4 of Schedule I, which requires ad valorem fee on the amount or value of the subject matter, as was paid on the application under Section 34 under Article 3A of Schedule I. The Court examined the relevant provisions: Article 3A of Schedule I (for applications under Section 34), Article 4 of Schedule I (for appeals from decrees), and Article 13 of Schedule II (for appeals not otherwise provided for). The Court noted that an order under Section 34 is deemed to be a decree under Section 36 of the Arbitration Act, and an appeal under Section 37 lies to the same court as an appeal from a decree. Therefore, the appeal is from a decree, and court fee is payable under Article 4 of Schedule I, which is ad valorem on the amount or value of the subject matter. The Court rejected the appellant's argument that Article 13 of Schedule II applies, as that article is a residuary provision for appeals not otherwise provided for. The Court directed the appellant to pay the deficit court fee within four weeks, failing which the appeal would stand dismissed without further reference to the Court.
Headnote
A) Arbitration - Court Fee - Appeal under Section 37 - Maharashtra Court Fees Act, 1959, Schedule I Article 4, Schedule II Article 13 - The issue was whether court fee on an appeal under Section 37 of the Arbitration and Conciliation Act, 1996 is payable as a fixed fee under Article 13 of Schedule II or ad valorem under Article 4 of Schedule I of the Maharashtra Court Fees Act - The Court held that since the appeal is from an order under Section 34, which is treated as a decree, the court fee is payable under Article 4 of Schedule I, being ad valorem on the amount or value of the subject matter, and not under Article 13 of Schedule II which applies only to appeals not otherwise provided for - The appellant was directed to pay deficit court fee (Paras 1-10)
Issue of Consideration
Whether court fee on an appeal under Section 37 of the Arbitration and Conciliation Act, 1996 is payable under Article 13 of Schedule II (fixed fee of Rs.25) or under Article 4 of Schedule I (ad valorem) of the Maharashtra Court Fees Act, 1959
Final Decision
The Court held that court fee on appeal under Section 37 is payable under Article 4 of Schedule I of the Maharashtra Court Fees Act, being ad valorem on the amount or value of the subject matter. The appellant is directed to pay the deficit court fee within four weeks, failing which the appeal shall stand dismissed without further reference to the Court.
Law Points
- Court fee on appeal under Section 37 of Arbitration and Conciliation Act
- 1996 is payable under Article 4 of Schedule I of Maharashtra Court Fees Act
- 1959
- being ad valorem on the amount or value of the subject matter
- and not fixed fee under Article 13 of Schedule II
Case Details
2016 LawText (BOM) (04) 91
Arbitration Appeal No.6 of 2015
Shri R.P. Joshi for Appellant; Shri A.M. Ghare a/w Shri A.A. Kathane for Respondent No.2; Shri M.A. Kadu, AGP for Respondent Nos.3 and 4
Rishabhkumar s/o Babulal Jejani
Secretary to the Government of India, Ministry of Road Transport and Highways, New Delhi; National Highways Authority of India; The Additional Commissioner, Nagpur and Arbitrator under the National Highways Act, 1956; The Deputy Collector, Land Acquisition (General), Nagpur
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Nature of Litigation
Appeal under Section 37 of the Arbitration and Conciliation Act, 1996 challenging order under Section 34 setting aside arbitral award
Remedy Sought
Appellant seeks to challenge the order dated 28.08.2015 passed by the Principal District Judge setting aside the arbitral award
Filing Reason
The appellant paid court fee of Rs.25 under Article 13 of Schedule II of Maharashtra Court Fees Act, but office and respondent No.2 objected that court fee should be ad valorem under Article 4 of Schedule I
Previous Decisions
The Principal District Judge passed order dated 28.08.2015 under Section 34 setting aside the arbitral award dated 29.08.2015
Issues
Whether court fee on appeal under Section 37 of Arbitration and Conciliation Act, 1996 is payable under Article 13 of Schedule II or Article 4 of Schedule I of Maharashtra Court Fees Act
Submissions/Arguments
Appellant argued that court fee of Rs.25 under Article 13 of Schedule II is sufficient as the appeal is not from a decree but from an order under Section 34
Respondent No.2 and office argued that court fee is payable under Article 4 of Schedule I, being ad valorem on the amount or value of the subject matter, as the order under Section 34 is deemed a decree under Section 36 of the Arbitration Act
Ratio Decidendi
An order under Section 34 of the Arbitration and Conciliation Act, 1996 is deemed to be a decree under Section 36 of the Act, and an appeal under Section 37 lies to the same court as an appeal from a decree. Therefore, court fee on such appeal is payable under Article 4 of Schedule I of the Maharashtra Court Fees Act, which provides for ad valorem fee on the amount or value of the subject matter, and not under Article 13 of Schedule II which is a residuary provision for appeals not otherwise provided for.
Judgment Excerpts
The appeal is from an order passed under Section 34 of the said Act, which is deemed to be a decree under Section 36 of the said Act.
The court fee payable on the appeal under Section 37 of the said Act would be governed by Article 4 of Schedule I of the Court Fees Act.
Article 13 of Schedule II is a residuary provision for appeals not otherwise provided for.
Procedural History
The appellant filed Arbitration Appeal No.6 of 2015 under Section 37 of the Arbitration and Conciliation Act, 1996 challenging the order dated 28.08.2015 passed by the Principal District Judge under Section 34 setting aside the arbitral award dated 29.08.2015. The appellant paid court fee of Rs.25 under Article 13 of Schedule II of the Maharashtra Court Fees Act. The court office and respondent No.2 raised objection that court fee should be paid under Article 4 of Schedule I. The Court heard the preliminary objection and passed the present judgment.
Acts & Sections
- Arbitration and Conciliation Act, 1996: Section 34, Section 36, Section 37
- Maharashtra Court Fees Act, 1959: Schedule I Article 3A, Schedule I Article 4, Schedule II Article 13
